New industries qualifying for tariff concessions can take machinery on lease without losing eligibility, provided they make new investments in non-metropolitan areas.

1. The Appellant in W.A. No.934 of 2016 is the Tamil Nadu Electricity Board (the TNEB). By order dated 07.06.2013 in W.P. No.34001 of 2002, the writ petition filed by the Respondent, S.S. Minerals Ltd. (S.S. Minerals) was allowed and the order dated 27.07.2002 of the TNEB was quashed. The said order is impugned in W.A. No.934 of 2016. W.P. No. 2624 of 2020 is filed by Larsen and Toubro Limited (L and T) for a mandamus to direct the TNEB to consider its application for a high tension power connection without insisting on the payment of the amounts claimed from the previous owner of the premises, S.S. Minerals, as a condition. L and T is stated to have acquired about 2.41 acres of land from S.S. Minerals by Sale Deed dated 26.02.2015 and, therefore, is the current owner of the premises previously used by S.S. Minerals. Therefore, the outcome of W.P. No.2624 of 2020 is largely contingent on the outcome of W.A. No.934 of 2016. Consequently, both the cases were heard and are disposed of by this common judgment.

2. S.S. Minerals applied for a concessional high tension tariff under letter dated 18.01.1997 in terms of G.O. Ms.No.29, Energy (A2) dated 31.01.1995 (G.O. Ms. No.29), which was issued in exercise of power conferred by S.4 of the Tamil Nadu Revision of Tariff Rates on Supply of Electrical Energy Act, 1978. As per the said amendment, a tariff concession was extended to new industries, as defined therein, subject to specified conditions. As regards non - metropolitan areas, the tariff concession was 60%, 70% and 80% of the high tension tariff for the first, second and third year, respectively. The relevant clause in G.O.Ms.No.29 is as under:
"Tariff concession for High Tension Industries coming under High Tension Tariff I: -
(a) In the case of new High Tension Industries to be set up in the areas other than the Madras Metropolitan areas, the following concessional tariffs shall be charged for the first three years from the date the consumer is given service connection under high tension tariff I: -
For the first year .. 60 per cent of the High Tension rates
For the second year .. 70 per cent of the High Tension rates
For the third year .. 80 per cent of the High Tension rates
For the fourth year ... Full Tariff.
The above concession shall apply to both unit rates and maximum demand charges. This concession shall not however be applicable to an industry set up before the 3rd May 1989. The concession shall not also be applicable to a consumer who utilizes power from his own generating units or makes other arrangements for production purposes and utilizes the power supplied by the Board for auxiliary purposes only:
Provided that the High Tension Industries set up in any area (including industrially under developed area, notified as such by the Government) before the 3rd May 1989 which are availing tariff concessions or reduction under High Tension Tariff I as on the 2nd May 1989, shall continue to avail the said tariff concession or reduction until the expiry of the period of five years from the date the consumer is given service connection under High Tension Tariff I.
Explanation: - For the purpose of electricity tariff concessions for new industries the term ''new industries'' shall mean a new investment by any entrepreneur including by an existing industry in any area other than the Madras Metropolitan areas, provided the assets other than cash, of the existing industry, are not transferred and shown as assets of the new industry."[emphasis added]

3. Pursuant